Former SEC Chair Gary Gensler resurfaced in a Bloomberg interview with a message that mirrors the stance he held throughout his term: most cryptocurrencies do not rest on strong foundations. His comments arrived during a volatile moment in the market and a week marked by institutional shifts, Federal Reserve actions, and ongoing debates about the role of digital assets in U.S. capital markets.
Gensler repeats his long-standing distinction between Bitcoin and other assets
Gensler again drew a sharp line between Bitcoin and the rest of the market. He described nearly all crypto assets except Bitcoin as “highly speculative” and warned that most tokens offer little clarity, structure, or fundamental value.
“The American public and the worldwide public have been fascinated with cryptocurrencies. But it’s a highly speculative, volatile asset,” Gensler said on Bloomberg TV on Tuesday. “And putting aside Bitcoin for a minute, all the thousands of other tokens, not the stable coins that are backed by US dollars, but all the thousands of other tokens, you have to ask yourself what’s the fundamentals, what’s underlying it.”
He stressed that most cryptocurrencies do not provide dividends or typical investment returns. He said investors must consider the absence of earnings, cash flow, or underlying economic value before entering the market.
He refused to frame the subject as partisan and rejected assumptions about political influence. He said he did not see crypto as a Republican-versus-Democrat debate. Gensler added that the issue comes down to the strength and fairness of U.S. capital markets.
Asked whether ETF approvals shifted crypto toward stock-market behavior, Gensler said the trend did not surprise him. As an MIT professor, he views finance as a system that often gravitates toward centralization. He said the integration of digital assets into traditional structures follows that pattern.
Gensler maintains the same stance in a separate interview
In another Bloomberg discussion, Gensler repeated that most of the crypto market remains “speculative and volatile.” He pointed to assets that surge on hype, launch with limited documentation, or lose significant value shortly after short rallies.
He said Bitcoin and a few regulated stablecoins sit in a different category because of broader trust and recognition. He referenced long-standing concerns about tokens with unclear purposes and minimal utility. These remarks match the enforcement posture he held as SEC Chair from 2021 to 2025, when he oversaw several actions against exchanges and staking programs.
Crypto supporters argued that Gensler continues to discuss an outdated version of the industry. They said the market no longer resembles the one he regulated, as institutions now hold ETFs and global macro factors influence Bitcoin. One comment summed up this sentiment with the phrase: “Gensler still fighting a war that already ended.”
Institutional shifts contrast with Gensler’s caution
His most recent comments coincided with significant institutional moves. Vanguard reversed its previous ban and opened access to Bitcoin, Ethereum, XRP and Solana ETFs for its 50 million clients. This shift produced immediate market impact and demonstrated rising demand for regulated exposure to crypto assets.
Market reactions and broader financial backdrop
Bitcoin rebounded toward $92,000 after a turbulent week driven by bond market moves and Federal Reserve interventions. Ethereum rose 8.3%, XRP increased to $2.18, and total market capitalization climbed above $3.22 trillion. Analysts referenced low exchange reserves, potential Federal Reserve rate cuts, and optimistic year-end projections.
Gensler’s stance continues to influence regulatory conversation
In another segment of the interview, he addressed topics from fair disclosure to exchange outages. He said market rules require equal access to information and consistent oversight. He repeated that Bitcoin stands closer to a commodity, while other tokens remain speculative in his view.
His framing continues to guide discussions across courts, compliance teams, and investment committees, even after his departure from the SEC.
Tanya Petrusenko
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